NEW YORK (CelebrityAccess) Twitter announced its first profit Thursday morning, sending its shares up 25 percent before the bell; the announcement comes as marketers may be looking at an alternative to Facebook and its new policies.
Twitter said its revenue was spurred by targeted ads and sales growth overseas, while investors appeared uninterested in its statement that it had zero growth in users over the past quarter, according to Reuters. Its trading price in pre-market, $33.70, was its highest since July 2015.
Twitter reported a net profit of $91.1 million compared with a loss of $167.1 million a year earlier.
TWTR stock was up approximately 25 percent at press time compared with Facebook (FB) stock, which was down approximately .50 percent. Facebook recently announced it was making adjustments to its news feed, which would show fewer viral videos and fewer pieces from publishers, making Twitter possibly more appealing to marketers, according to MarketWatch.
“A tailwind for Twitter in the near-term in our opinion is the Facebook news feed overhaul, which is forcing publishers and online advertisers to ‘dip their toe in the water’ on the Twitter platform and start to ramp up ad investments on this platform,” GBH Insights analyst Daniel Ives wrote, according to MarketWatch.
Twitter has been investing in its own video platform, and Snap Inc., i.e., home to Snapchat, has also been seen as an investment, according to MarketWatch. SNAP stock rose 45 percent yesterday, trading above its $17 IPO price.